Bearish and bullish short term scenarios for S&P500

As warned in the previous post price may continue in a complex correction before resuming its impulsive behaviour. At this point we still have multiple scenarios in the short term both bullish and bearish .

Bearish scenario:
1- We may be near the end of a double zigzag correction as shown here. What would be expected in this case is for price to reverse sharply between 2847 and 2873 (this is the 100-123% extension for the double zigzag as shown). For this scenario to be valid price must not exceed 2895 level. For the time being price has validated the blue pitchfork and a short trade should not be taken before this pitchfork is broken

Bullish scenario:
2- There is the possibility of developing a triangle before resumption of the uptrend. This would allow for the 2895 level to be exceeded as part of the triangle.

3- The possibility of developing a flat correction before resumption of the uptrend. This too would allow for the 2895 level to be exceeded.

4- Complex double and triple threes are also possible at this juncture.

The safest way to trade given the multiple possible EW scenarios, is to rely on the pitchforks . For example price is currently following this blue pitchfork nicely. It would be interesting to see if price bounces off its median line or zooms through it to higher levels. A long trade is possible with a stop loss below the 0.25 quartile where price has found support, and a short trade is also possible once price breaks the lower parallel if it does break it.